Southern LNG Inc.

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP99-582-004, Status: Effective

Original Sheet No. 9 Original Sheet No. 9 : Superseded

 

RATE SCHEDULE LNG-1

(Continued)

 

(b) Boil-Off Gas:

 

(i) Definitions:

 

Boil-off gas includes gas (1) boiling off from Southern LNG's unloading and

storage facilities, (2) flashing from the liquid phase to the gaseous phase

during unloading LNG from Customer's vessel(s), (3) returning to Customer's

vessel(s) during receipt of LNG, and (4) boiling off during the operation of

Southern LNG's process equipment.

 

(ii) Disposal:

 

Customer must arrange for the delivery on each day of Customer's share of

boil-off gas (except boil-off gas returning to Customer's vessel(s) during

receipt of LNG). If all necessary arrangements (including nomination and

confirmation) are not complete, then Southern LNG shall take title to the

boil-off gas. Customer shall indemnify Southern LNG against any claim,

demand, or action arising from Customer's failure under this paragraph;

provided, however, that Southern LNG shall not take title to, and will

allocate to Customer's Service Agreement, boil-off that enters the downstream

pipeline.

 

(iii) Allocation:

 

Customer's share of boil-off gas on any day equals a proportionate share

based on the ratio of Terminal Service provided to Customer on that day to

all Terminal Service provided on that day.